Increasing Financial Outlook
The company announced second-quarter results that beat estimates and increased its 2008 earnings and sales forecasts.
On Thursday , May 29, Joy Global said that its fiscal second-quarter profit fell 7% as higher expenses offset increased sales, but that adjusted earnings still beat analyst estimates.
Net Income
Net income for the three months ended May 2 dropped to $72.1 million, or 66 cents per share, from $77.6 million, or 70 cents per share, in the year-ago period. Excluding one-time charges of 13 cents per share for a contract termination and seven cents per share related to an acquisition in February, Joy Global had adjusted earnings per share of 86 cents.
The Street was expecting earnings per share of 72 cents, with such estimates typically excluding one-time charges.
Revenue
As for the top-line, revenue climbed 34% to $843.1 million from $629.2 million last year, and above the Street’s $798.3 million expectation. Joy Global also highlighted that orders reached a record $1.2 billion, up 69% from the prior-year period on strengthened conditions in the U.S. coal market and continued growing international demand. Breaking it down: original equipment orders jumped 102% and aftermarket orders grew 22%.
Management Outlook and Forecasts
Commenting on the results, Joy Global’s Chief Executive Mike Sutherlin said, “Despite orders that have set new company records multiple times over the past year, our list of qualified prospects continues to grow and indicates that our markets will continue to strengthen going forward.” He added that, “The fundamentals and outlook for our
markets are stronger today that at any other time since this growth period began in 2003.” Also on Thursday, Joy Global increased its fiscal 2008 EPS estimate to $3.15-3.30, up from the company’s previous forecast of $2.96-3.22, and fiscal 2008 revenue of $3.3-3.4 billion, up from the company’s previous forecast of $3.1-3.3 billion. The Street is anticipating EPS of $3.27 on revenue of $3.2 billion.
